The relationship among capital market development, money market developpment, and economic growth evidence from Indonesia

abstract this paper aim to test long - run and short - run causal relationshipamong capital market development, money market development and economic growth in Indonesia during 1988 until 2012. Using vector error correction model (VECM), the result show us that capital market development granger causes money market development and economic growth. econimic development granger causes money market development. There areno long - runrelationship found in our model. based on these results, the paper argues that stock market development has an important role to promote economic growth in indonesia and dispromote money market development. keyword : money market development, capital market development, economic growth, vector error correction model